Trump administration finalizes lower fuel economy standards for cars and light trucks

The Trump administration finalized new Corporate Average Fuel Economy (CAFE) standards on September 28, 2026, reducing the required fleetwide average fuel economy target to approximately 34.9 miles per gallon by model year 2031, down from the Biden-era target of 50.4 mpg. The administration says the change will lower vehicle prices by about $1,300 on average and save Americans $138 billion over five years. Environmental groups and critics say the rollback will increase pollution and gasoline consumption.